The Federal Housing Administration (FHA) announced it is extending the date for single-family homeowners with FHA-insured mortgages to request an initial forbearance from their servicer to delay their mortgage payments for up to six months.

Homeowners experiencing a financial hardship as a result of the COVID-19 pandemic now may request an initial forbearance through Dec. 31, 2020.

Previously, homeowners with FHA-insured mortgages needing assistance had until the end of this month to request a COVID-19 forbearance from their mortgage servicer. The announcement was made Tuesday at the MBA Annual Conference.

“I can’t stress enough that this relief should be reserved for those that need it most,” Department of Housing and Urban Development (HUD) Secretary Ben Carson said. “Americans who are capable of paying their mortgage on time should do so. The great American come back is in full force – if we work together, we can achieve and even surpass the economic prosperity we saw prior to the pandemic.”

FHA requires mortgage servicers to provide up to six months of COVID-19 forbearance when a homeowner requests this assistance, and up to an additional six months of forbearance for homeowners who request an extension of the initial forbearance. Homeowners needing assistance must engage with their servicer to obtain an initial forbearance or to obtain an extension of the initial forbearance.

“By providing this important extension, FHA seeks to assist those struggling with the continued financial effects of the COVID-19 pandemic,” Assistant Secretary for Housing and Federal Housing Commissioner Dana Wade said in a news release. “Our goal is to make sure that no homeowner loses their home unnecessarily as a result of this pandemic.”

FHA requires mortgage servicers to:

Offer homeowners with FHA-insured mortgages mortgage payment forbearance when the homeowner requests it, with the option to extend the forbearance for up to a year in total. FHA does not require a lump sum payment at the end of the forbearance period.  

Assess homeowners who receive COVID-19 forbearance for its special COVID-19 National Emergency Standalone Partial Claim before the end of the forbearance period. The Standalone Partial Claim puts all suspended mortgage payment amounts owed into a junior lien, which is only repaid when the homeowner sells the home, refinances the mortgage or the mortgage is otherwise extinguished.  

Assess homeowners who are not eligible for the COVID-19 National Emergency Standalone Partial Claim.